Friday, December 18, 2009

A Possible End To Bank/Insurance Ties

A story by Reuters dated yesterday states that legislation has been introduced in Congress that if passed would restore the separation between banks and insurance. Specifically, the bills would prohibit larger banks from either entering into an affiliation with securities firms or being involved with the insurance business.

The argument behind the legislation is that by limiting the size and scope of financial institutions, situations requiring massive government bailouts such as what has taken place the past two years can be avoided.

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